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4 The MODI and VAM Methods of Solving Transportation Problems

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T4-10 CD TUTORIAL 4 THE <strong>MODI</strong> AND <strong>VAM</strong> METHODS OF S OLVING T RANSPORTATION P ROBLEMS<br />

dem<strong>and</strong> <strong>and</strong> supply in millions <strong>of</strong> kilowatt hours <strong>and</strong> the costs per kilowatt hour <strong>of</strong> transmitting electric power<br />

to four small companies in cities W, X, Y, <strong>and</strong> Z.<br />

To<br />

Excess<br />

W X Y Z<br />

From Supply<br />

A 12¢ 4¢ 9¢ 5¢ 55<br />

B 8¢ 1¢ 6¢ 6¢ 45<br />

C<br />

Unfilled Power<br />

1¢ 12¢ 4¢ 7¢ 30<br />

Dem<strong>and</strong> 40 20 50 20<br />

Use Vogel’s approximation method to find an initial transmission assignment <strong>of</strong> the excess power supply. <strong>The</strong>n<br />

apply the <strong>MODI</strong> technique to find the least-cost distribution system.

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